Starbucks founder and CEO Howard Schultz says the company’s new line of olive oil-infused drinks will disrupt the industry and be a big money maker for the coffee giant.
Key Details
- Starbucks is introducing a line of olive oil-infused coffee drinks in Italy that the current CEO says will become a big money-making market for the company.
- The drinks called “Oleato” are being introduced at Starbucks’ 25 Italy locations this week with plans of expanding to the U.S. by spring.
- Schultz says the coffee industry has recently been tight, but he expects the olive-oil line to boost Starbucks ahead of others.
Why it’s news
Starbucks is already a leader in the coffee industry, boasting net revenue of $26.58 billion in 2022, but the company is launching a new line of coffee that it expects will disrupt the market and be a significant source of revenue.
Starbucks is launching a line of olive oil-infused coffee starting in Italy with plans of moving to the U.S. in the upcoming months. CEO and company founder Schultz says this new line will shake the current market and send Starbucks to the top.
“This is a transformational moment in the history of our company creating a new category, a new platform,” says Schultz.
The coffee industry has been affected by high prices and softening consumer demands causing Starbucks to have to raise prices, which many customers have already complained are too high, about 5%.
The company has hopes that the new “Oleato,” an olive oil-infused line, will send the company back up and be a significant source of revenue. Along with the olive-oil coffee, the company will release olive oil espresso martinis in select locations, including some shops in Italy, Seattle, and New York.
Schultz will be stepping down as interim CEO in April, with new CEO Laxman Narasimhan taking over the position, but he says he will maintain his board seat and act as an ambassador for the Oleato brand.